Posted to News on 22nd Jan 2020, 11:49
Eaton to sell hydraulics business to Danfoss for $3.3 billion
Eaton has announced it has entered into an agreement to sell its Hydraulics business to Danfoss A/S for $3.3 billion in cash. This represents a 13.2 multiple of 2019 EBITDA.
Eaton's Hydraulics business, which accounted for 86 per cent of Eaton's Hydraulics segment revenue in 2019, is a global leader in hydraulics components, systems, and services for industrial and mobile equipment. The business had sales of $2.2 billion in 2019 and employs approximately 11,000 people.
Eaton is retaining the Filtration and Golf Grip businesses currently reported in the company's Hydraulics segment.
Craig Arnold, Eaton chairman and chief executive officer says: "Today's announcement is part of the ongoing transformation of Eaton into a higher growth company with better earnings consistency. We believe this transaction will create substantial value for our shareholders and allow our hydraulics employees to be part of a company that has a strong commitment to the hydraulics industry."
Kim Fausing, Danfoss president and chief executive officer says: "Eaton Hydraulics is a highly respected player in the global hydraulics industry, recognised for its dedicated people and strong brands. By combining the knowledge and experience of these two companies, our customers will benefit from unmatched expertise from a single partner."
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year. Go to www.uk.eaton.com for more information.
